Daily Break-Even Revenue

It is how much you need to ring up today just to stop losing money — before profit.

Formal definition

Daily break-even revenue is the sales dollars required each day to cover variable and allocated fixed costs for that operating day.

Why it matters

Restaurants with high daily break-even need strong lunch and dinner traffic every day; slow Tuesdays can wipe out a good weekend.

Where you see it

• Restaurant manager shift logs
• POS daily sales targets
• Franchise operating manuals
• Food-service coaching programs
• Cash-flow crisis planning

Worked example

1. Daily fixed + variable costs: $3,200.
2. Daily break-even revenue = $3,200.
3. Actual sales today: $4,000.
4. Interpretation: Today cleared break-even by $800 before owner profit.

How Business metrics calculates it

Annual operating expenses ÷ 12 ÷ Days open per month.

Where people fool themselves

Daily break-even using annual expenses divided by 365 when you are closed 2 days a week will panic you every Tuesday. Divide by days you actually open.

Run it on your own numbers: the Food & Beverage calculator.